Facebook shares plummeted in after-hours Wednesday trading amid concerns over the tech giant’s future.
Facebook’s stock declined sharply as slowing global daily active users slow and scrutiny of data privacy issues continue to plague the social networking giant. Facebook’s daily active users missed projections in North America, Europe, and on a global basis.
Global daily active users (DAUs): 1.47 billion vs. 1.49 billion, according to a StreetAccount and FactSet estimate
North American DAUs: 185 million vs. 185.4 million, according to a FactSet estimate
European DAUs: 279 million vs. 279.4 million, according to a FactSet estimate
Average revenue per user (ARPU): $5.97 vs. $5.95, according to a StreetAccount and FactSet estimate
Shares tumbled 20 percent subsequent to the company reporting its second-quarter earnings — after the market closed. Facebook founder and CEO Mark Zuckerberg’s net worth dropped by a staggering $16.8 billion in late trading hours.
The results missed Wall Street expectations.
The average estimate of 15 analysts surveyed by Zacks Investment Research was for earnings of $1.75 per share. The social media company posted revenue of $13.23 billion in the period, also falling short of Street forecasts. Fourteen analysts surveyed by Zacks expected $13.43 billion.
Facebook shares have increased 23 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased 6.5 percent. In the final minutes of trading on Wednesday, shares hit $217.50, an increase of 32 percent in the last 12 months.
The Associated Press contributed to this report.